What factors lead to changes in the quantity demanded of money and what factors lead to changes in the demand for money?
What will be an ideal response?
Changes in the nominal rate of interest change the quantity of money demanded. Changes in the price level, real GDP, and financial technology change the demand for money.
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Refer to Scenario 5.9. Without additional information, Torrid Texts would
A) contract with one paper producer in order to guarantee it avoids the worst outcome, $1 million. B) contract with two paper producers because $60 million is greater than $30 million. C) contract with two paper producers because $61 million is greater than $33 million. D) contract with two paper producers because $45.25 million is greater than $23.25 million. E) not be able to come to any decision on how many producers to contract with.
The opportunity cost to society of producing one more unit of the good is
A) average cost. B) marginal cost. C) efficiency costing. D) the optimal cost.